News

MTS complains of high iPhone pricing, Apple control

By Charles Starrett ● Tuesday, July 31, 2012

Russian carrier MTS has publicly complained about Apple’s iPhone pricing in the country, as well as the company’s policies on how it’s sold. Bloomberg reports that MTS’ vice president of marketing, Vasyl Latsanych, was in New York for an event, and used the forum to express frustration over the iPhone’s price, as well as Apple policies that demand carriers’ retail locations to meet certain standards. “They’re more in a dictatorship mode where they say, ‘This is what you have to do or you don’t get the iPhone,’” said Latsanych. “Being arrogant with your partners in big markets doesn’t pay off.”

Michael Hecker, MTS’s vice president for strategy and corporate development, commented at the same event that Apple would be able to gain a larger share of the Russian market if it dropped the price or helped to subsidize the handset. “If Apple showed more flexibility then they would have a higher penetration in our markets,” Hecker said. The company later issued a statement through its representative Joshua Tulgan, saying “while we have differences with Apple, we have a constructive relationship. Smartphones like the iPhone are important to our customers and our economy and we want to get them into the hands of as many people as possible.”